Congoleum Corp. reports second quarter results

Business Wire, August 5, 1996

MERCERVILLE, N.J.--(BUSINESS WIRE)--Aug. 5, 1996--Congoleum Corp. (NYSE:CGM) reported Monday net income for the three months ended June 30, 1996 of $4.8 million, or 48 cents per share, on sales of $74.4 million.

This compares with net earnings in the second quarter of 1995 of $3.8 million, or 38 cents per share, on sales of $68.7 million.

Roger S. Marcus, chairman of the board, said, "Second quarter sales were at record levels, due to strong performance in most segments, particularly manufactured housing. Gross profit margins benefited from moderate raw material costs and increased manufacturing efficiencies. Although marketing expenses have been increased, operating margins of 12.7% were achieved."

Marcus continued, "The company undertook several initiatives in 1995 and early 1996 to improve sales and margins, and I believe the second quarter results indicate the success of these efforts. I am also optimistic that our strategies will continue to produce positive results in the future.

"Specifically, during the second quarter we added several new customers, including Home Depot, to whom we anticipate added sales during the second half of 1996. Also, we announced three aggressive new promotions which should further increase business during the balance of the year. Finally, our margins should continue to benefit from ongoing capital improvement programs."

Congoleum Corp. is North America's second largest manufacturer of resilient vinyl flooring, serving both commercial and residential markets with products in a wide variety of designs and colors. The company's products are used primarily by the remodeling, replacement, commercial, manufactured home and new residential markets.

The Congoleum brand name has been associated with the flooring industry since 1924.

Congoleum is a 44% owned subsidiary of American Biltrite Inc. (AMEX: ABL). -0-